§ 1037.9. Prefund Account
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 77 P.S. Workers’ CompensationEffective: July 1, 2001
Effective: July 1, 2001
77 P.S. § 1037.9
§ 1037.9. Prefund Account
(a) There is established in the Self-Insurance Guaranty Fund a restricted account known as the Prefund Account. The department shall annually transfer from the Workmen's Compensation Administration Fund to the account an amount up to three million eight hundred thousand dollars ($3,800,000) but not exceeding the sum of all claims for benefits payable under subsection (c).
(c) Transfers to the account pursuant to subsection (a) shall be used to pay claims for loss of wages occurring or medical treatment provided after the effective date of this section under sections 306(a), (b), (c) and (f.1) and 307 of this act1 or under sections 306(a), (b) and (c) and 307 of the act of June 21, 1939 (P.L. 566, No. 284), known as “The Pennsylvania Occupational Disease Act,”2 to a prefund claimant upon exhaustion of the security posted by the liable defaulted self-insurer: Provided, That:
(d) When payments are made from the account on behalf of a defaulted self-insurer, the department assumes the rights and obligations of the defaulted self-insurer under this act and “The Pennsylvania Occupational Disease Act” with regard to the payment of claims. The department shall have the right to:
(2) Obtain, in any manner or by use of any process or procedure, including the commencement and prosecution of legal action, reimbursement from a defaulted self-insurer and its successor, assigns and estate of all payments from the account to its prefund claimants, including reimbursement of all claims for benefits paid as well as reasonable administrative and legal costs associated with the payment.
(1) If the department projects that the aggregate payments to prefund claimants pursuant to this section during any one fiscal year may exceed the transfer to the account for that year, the secretary shall order the payment of benefits under sections 306(a), (b) and (c) and 307 at a percentage of the full amounts payable under this act and “The Pennsylvania Occupational Disease Act.” The percentage shall be uniformly applied to all benefits under those sections paid during that fiscal year. The secretary shall adjust that percentage from time to time as is necessary based on updated projections on payment of benefits.
(2) To take action under paragraph (1), the department must provide a minimum of sixty (60) days' notice to the General Assembly of the impending action. The notice must be in the form of a written report of the pending funding shortfall to the chairpersons and the minority chairpersons of the Appropriations Committee and the Labor and Industry Committee of the Senate and the chairpersons and the minority chairpersons of the Appropriations Committee and the Labor Relations Committee of the House of Representatives. The General Assembly may appropriate sufficient funds to the account to continue full payment of benefits to prefund claimants for that fiscal year.
(g) Nothing in this section shall be construed to require the department to make wage loss payments to an individual who is currently receiving wages equal to or in excess of the benefit they would receive under this section. Nothing in this section shall be construed to require the department to make a wage loss payment that would result in an individual receiving more in wages and compensation combined than his pre-injury wage.
Credits
1915, June 2, P.L. 736, No. 338, art. IX, § 909, added 2000, June 22, P.L. 390, No. 53, § 3, effective in 60 days. Amended 2001, June 22, P.L. 606, No. 49, § 3, effective July 1, 2001.
Footnotes
77 P.S. §§ 511, 512, 513, 531, 542, 561, 562.
77 P.S. §§ 1406 and 1407.
77 P.S. § 501.
65 P.S. § 66.1 et seq. (repealed); see 65 P.S. § 67.101 et seq.
77 P.S. § 1037.9, PA ST 77 P.S. § 1037.9
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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